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2019 Supreme(All) 2010

IN THE HIGH COURT OF ALLAHABAD AT LUCKNOW BENCH
Dinesh Kumar Singh, J.
Laxmi Narain Agarwal and Others – Appellants
Versus
State of U.P. and Others – Respondents
Misc. Single Nos. 5413, 5783 of 2015
Decided On : 19-08-2019

Advocates:
Advocate Appeared:
For the Appellants : Sandeep Dixit, Vijay Dixit.
For the Respondents: Amit Jaiswal, Apoorv Tewari, L.P. Mishra, Gaurav Mehrotra, Manu Dixit, Rajeiu Kumar Tripathi, S.K. Kalia, Santosh Kr. Tripathi, Vikas Vikram Singh.

Headnote:

Societies Registration Act, 1860 – Petitioner, challenging order passed by Deputy Registrar, Society registered and its registration has been renewed from time to time and last renewal was made for 5 years object of Society, as given in Memorandum of Association, is to establish Society to promote practical oriented business management information and computer application, education, training, research and development and consultancy etc, further object is to promote and manage educational and vocational institutions, schools/colleges affiliated to any approved educational body/authority within Union of India besides other objects as mentioned in Memorandum –Held, It may be true faced with such situation, there is no requirement of any prior permission from the Assistant Registrar, Firms, Societies and Chits before the surviving members proceed to enroll life members/members of the general body of the Society, but once the entire foundation and basis is based on permission and the said permission is not at all available on record, and is not credible one, then the exercise, that has been so undertaken in reference of enrollment of members, rightly has not been relied upon by the learned Single Judge. Not only this, the surviving members have come forward by taking specific stand that proceedings are nothing but an act of manipulation, emphasis has been made on the fact that the surviving members have come forward with the specific case that the entire proceedings are forged and in this regard it has also been contended that a criminal case has also been instituted, wherein statement has been got recorded clearly mentioning therein that entire proceedings are forged. Affidavit of surviving members disowning the proceedings has also been relied upon, election for electing the committee of management. This exercise needs to be completed within a period of one month restrained from acting in any manner and participating in the affairs of the committee of management. Till election takes place, after inducting two new members, Deputy Registrar should ensure that the affairs of the committee of management are carried out properly – Writ petitions are allowed. (Para’s 7, 8.1, 8.2)

Facts of the case:

Petitioner, challenging order passed by the Deputy Registrar, Society registered and its registration has been renewed from time to time and last renewal was made for 5 years object of Society, as given in Memorandum of Association, is to establish Society to promote practical oriented business management information and computer application, education, training, research and development and consultancy etc, further object is to promote and manage educational and vocational institutions, schools/ colleges affiliated to any approved educational body/authority within Union of India besides other objects as mentioned in Memorandum.

Findings of the court:

It may be true faced with such situation, there is no requirement of any prior permission from the Assistant Registrar, Firms, Societies and Chits before the surviving members proceed to enroll life members/members of the general body of the Society, but once the entire foundation and basis is based on permission and the said permission is not at all available on record, and is not credible one, then the exercise, that has been so undertaken in reference of enrollment of members, rightly has not been relied upon by the learned Single Judge. Not only this, the surviving members have come forward by taking specific stand that proceedings are nothing but an act of manipulation, emphasis has been made on the fact that the surviving members have come forward with the specific case that the entire proceedings are forged and in this regard it has also been contended that a criminal case has also been instituted, wherein statement has been got recorded clearly mentioning therein that entire proceedings are forged. Affidavit of surviving members disowning the proceedings has also been relied upon, election for electing the committee of management. This exercise needs to be completed within a period of one month restrained from acting in any manner and participating in the affairs of the committee of management. Till election takes place, after inducting two new members, Deputy Registrar should ensure that the affairs of the committee of management are carried out properly.

Result: Writ petitions are allowed

ORDER :

1. These two petitions have been filed by the petitioner, challenging the order dated 10.09.2015 passed by the Deputy Registrar, Firms, Societies and Chits, Lucknow, finalizing the list of members of general body of Shri Ram Swaroop Memorial Institute of Management and Computer Application (for short "the Society") registered under the provisions of Societies Registration Act, 1860 (for short "Act 1860").

2. The Society was registered on 29.12.1998 and its registration has been renewed from time to time and the last renewal was made on 29.12.2013 for 5 years i.e. up-to 28.12.2018. The object of the Society, as given in Memorandum of Association, is to establish a Society to promote practical oriented business management information and computer application, education, training, research and development and consultancy etc. The further object is to promote and manage educational and vocational institutions, schools/ colleges affiliated to any approved educational body/authority within Union of India besides other objects as mentioned in the Memorandum.

3. At the time of registration of the Society, the following were the members of the Executive Committee with whom the management of the affairs of the Society was entrusted:-

(i) Mr. Laxmi Narain Agrawal S/o Late R.S. Agrawal

(ii) Mr. Banwari Lal Kanchhal S/o Late C.L. Agarwal

(iii) Mr. Nagendra Kumar Agarwal S/o Shri PL Agarwal

(iv) Smt. Pooja Agarwal W/o Shri Pankaj Agarwal

(v) Prof. (Dr.) S.P. Dixit S/o Late B.V. Dixit

(vi) Dr. Bhartendu Agarwal S/o Shri L.N. Agarwal

(vii) Dr. Swati Agarwal W/o Dr. B. Agarwal

4. Bye-laws of the Society prescribe three kinds of members i.e. (i) Founder Member; (ii) Life Member and (iii) Honourary Member. Founder Member is Mr. Laxmi Narain Agrawal. He has been authorized to nominate any life-member as founder member, considering the contribution to the cause of the Society in the form of money, besides physical efforts.

5. All the seven members of the Society are also life members of the Society. The President of the Society has right to nominate any person or persons from time to time as honorary member of the Society and likewise to withdraw such nomination at any time.

6. Termination of membership from the Society can happen in the following eventualities:-

(i) on resignation

(ii) on death

(iii) on expiry of the term

(iv) insanity or idiosyncrasy

(v) on conviction in any criminal offence, involving moral turpitude

(vi) bodily infirmity or immorality

(vii) indiscipline

7. The Society consists of two organs i.e. (i) general body and, (ii) executive body. The general body consists of all members of the Society. The general body has to meet at-least once in a year. An extraordinary meeting of the general body can be called in case of emergency by the President or on a requisition of 1/3rd of the total members for a specific purpose. Three days notice is required to be given for calling a general body meeting and one day notice in case of extraordinary meeting of the general body. The quorum for calling meeting of the general body is 1/3rd of the total members of the Society. It is also provided that annual meeting of the Society will be held in the last week of April in every year. The powers and duties of the general body recognize it as the supreme body which will look after overall development of the institute/Society. It is empowered to elect members of the executive body and appoint chief election officer.

8. The executive body consists of all seven members of the Society. The executive body is required to meet at-least once in four months and extraordinary meeting can be called by President/Secretary or on requisition of 1/3rd members of the executive body with three days advance notice for normal meeting and in case of emergency meeting, the telephonic notice would be suffice. The quorum for meeting is 1/3rd of the total members. It is also provided that if a vacancy occurs during a particular year, the executive body is empowered to fill up such vacan

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